This year’s release marks the 20th edition of our Australian Master Financial Planning Guide. To mark this milestone, we are releasing a series of articles giving you exclusive insight into significant changes covered in key chapters from the Guide.
Chapter 12: Family home
- It is proposed that the main residence exemption will not be available for foreign residents or temporary residents for tax purposes with effect from 9 May 2017, subject to grandfathering rules to 30 June 2019
- From 1 July 2017, a CGT withholding tax of 12.5% is imposed on the sale of taxable Australian real property valued at $750,000 or higher by a foreign resident
- Additional taxes such stamp duty and land tax surcharges may be imposed on foreign residents buying or owning residential property in Australia
- It is proposed that foreign owners of vacant residential property will be subject to an annual levy of $5,000
- It is proposed that from 1 July 2018, purchasers of new residential properties or new subdivisions will be required to remit the GST directly to the ATO as part of the property settlement, instead of to the seller
- Buyers in NSW who are purchasing a home they plan to live in off-the-plan (regardless of whether they are first home buyers or not) are entitled to a 12-month delay in the payment of stamp duty, deferring payment from 3 to 15 months after settlement
- The government is proposing to introduce a new scheme to encourage saving through voluntary superannuation contributions for the purpose of acquiring a first home
- From 1 July 2017, the depreciation deduction is proposed to be limited to outlays actually incurred by the taxpayer (as opposed to amounts inherited from the previous owner). Travel expenses related to inspecting, maintaining or collecting rent for a residential property are proposed to no longer be tax deductible
- There are numerous taxation considerations to be taken into account when considering renting out a property for short stays on Airbnb
- It was proposed in the 2017 Federal Budget to allow retirees who are selling their family home to make additional superannuation contributions up to a maximum of $300,000 from 1 July 2018.
Chapter 17: Retirement living and aged care
- In February 2017, significant changes were introduced to home care packages to increase competition. The home care package is now owned by the consumer and therefore portable between aged care providers
- There are special rules for assessing granny flat interests. The amount paid for a granny flat interest determines whether a person is considered to be a homeowner or non-homeowner and is also subject to a reasonableness test to ascertain whether deprivation has occurred
- Alternative in-house facilities such as ‘over 50 living’ are increasing the care services they offer. These may assist individuals with delaying their transfer to an aged care facility
- From 1 January 2017, changes to the assessment rules of rental income from the family home make it more difficult to retain and rent out the property. The home is now assessed as an investment property for two years from the date the property is vacated.
For an overview of the range of accommodation and care options available to senior Australians register for our webinar with Aged Care Gurus.
For more insights from the 2017/18 Australian Master Financial Planning Guide, read more articles from the series:
- What’s New in Financial Planning: Income Tax and Superannuation
- Compliance for Financial Planners: New panel to ban practitioners for misconduct
- Financial Planning for 2017/18: Retirement income streams
- Financial Planning for 2017/18: Social Security
Stay tuned for articles still to come, and order your Guide today!